Home Tech Auto Uber Acquires Brooklyn-based Bike Sharing Service JUMP in $200 Million

Uber Acquires Brooklyn-based Bike Sharing Service JUMP in $200 Million

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Uber has recently acquired a bike-sharing startup called JUMP. JUMP was already in talks with the transportation network company along with some investors for a potential fundraising round. As per one source, the final price for this deal is $200 million.

The Bike-share company’s decision to sell to Uber was meant to realize the vision of the company on a large scale. JUMP’s CEO Ryan Rzepecki revealed that he got impressed by the vision and leadership of the Uber’s CEO (Dara Khosrowshahi) and it impacted his decision.

He believes that Uber is on its right track and it would be a very promising deal to get acquired by them. As part of the latest acquisition, the employees of JUMP will join Uber’s team, though the bike-share company will continue working as an independent, solely controlled subsidiary, added Rzepecki.

The bike-share company is well known for handling dock less, pedal-assist bikes. These bikes are permitted to legally lock to bike parking racks or to the furniture zone of sidewalks. There is another benefit that it comes with integrated locks to protect the bikes.

The acquisition wasn’t too surprising. In the month of January, Uber partnered with the Jump Bikes to launch Uber Bike that allowed Uber riders to book JUMP bikes using their Uber application. However, the majority of trips still take place through JUMP application. As per Rzepecki’s words, for a time being, the application of JUMP will exist but it may eventually change.

As per Rzepecki’s statement, soon the experience will be more deeply integrated into the application of Uber for JUMP Bikes.

In the meantime, international competitors of Uber also have made similar sort of move. A ride-hailing startup based in India expanded into bicycles at the end of last year. Known as Ola Pedal, this service is chiefly available on a handful university campuses in India. While there is China’s Didi and Southeast Asia’s Grab; that have launched their own corresponding bike-share services in this year. Both these companies have invested in bike-sharing startups named as Ofo and OBike, respectively.

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Tajammul Pangarkar is a tech blogger, and has contributed to numerous tech magazines. Taj's longstanding experience in the field of mobile technology and industry research is reflected in his insightful news articles as presented on TechnoVally. His interest lies in understanding the tech trends, mobile applications and technical consciousness on these increasingly consumer-oriented industries. When he is not ruminating about the tech world, he can be found playing table tennis or hanging out with his friends.